How does a principal become liable to third parties on contracts?

A principal is not liable to third parties on contracts.

The agent ratifies the contract.

The principal$$s agent has the authority to bind the principal in a contract with a third party.

The principal directly signs a contract with a third party.

Assessment question

When is an agent liable on a contract that the agent entered into in the business of the agent$$s principal? Choose $3$ answers.

if the agent entered into the contract in a personal capacity

when the agent is acting without authority

when the principal is not satisfied with the terms of the contract

when the principal is undisclosed

Assessment question

Is a principal liable for the tortious actions of the principal$$s agent?

Yes, but the agent must reimburse the principal.

No$,$ only the agent is liable for the agent$$s torts.

Yes, but only if the principal authorized the tortious conduct.

No$,$ unless the principal authorized the tortious conduct.

Assessment question

Who is liable to third parties for damage caused by an agent$$s tortious conduct if the principal had directed the agent to take that action?

both the agent and the principal

neither the agent nor the principal if the principal has insurance coverage

only the principal

only the agent

Assessment question

If harm is done by an agent, and it is discovered that this agent has been convicted of the same harm before at a previous job, what might a principal be liable for?

the principal will be held liable only if they were aware of the frolic.

the principal cannot be held liable unless the individual was an independent contractor.

the principal will be held liable.

the principal will not be held liable.

Assessment question

Who can terminate an agency relationship?

Only the principal may terminate.

Neither may terminate the agency until the terms of the agreement have transpired.

Either the agent or the principal may terminate.

Only the agent may terminate.

Assessment question

What will terminate an agency relationship? Choose $3$ answers.

lapse of a pre$-$specified time

passage of one year, as agency agreements must be updated annually

achievement of the purpose of the agency

mutual agreement between agent and principal

Assessment question

What is the term for the act of terminating an agency relationship? Choose $2$ answers.

renunciation, if done by the principal

renunciation, if done by the agent

revocation, if done by the principal

revocation, if done by the agent

Assessment question

What must a principal do to terminate an agency at will?

Pay a severance payment to the agent.

Give express written notification to the agent.

Simply notify the agent of the termination.

Get a court order to terminate the agency.

Assessment question

In an agency at will, what would constitute a wrongful termination? Choose $2$ answers.

the principal terminating for a discriminatory reason

the principal not giving the agent reasonable notice

the agent terminating for any reason

the agent not giving the principal adequate notice